Senate Introduced Bill B01316

SENATE BILL No. 1316

May 9, 2002, Introduced by Senators HAMMERSTROM, STILLE and STEIL and referred to

the Committee on Finance.

A bill to create and provide for the operation of the

Michigan next energy authority; to provide for the creation and

appointment of a board to govern the authority and to prescribe

its powers and duties; to provide for the powers and duties of

the authority; to extend protections against certain liabilities

to the authority; to authorize the conveyance of state land and

to confer authority and jurisdiction over state land to the

authority; to provide for the issuance of certain bonds, notes,

and other obligations; to facilitate the use and development of

authority property; to promote alternative energy technology and

economic growth; to authorize the acquisition, maintenance, and

disposal of interests in real and personal property; to provide

for the conveyance of land transferred to the authority; to allow

for the creation of a center to manage the authority's land; to

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convey state land; and to exempt property, income, and operations

of an authority from tax.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. This act shall be known and may be cited as the

2 "Michigan next energy authority act".

3 Sec. 2. As used in this act:

4 (a) "Alternative energy technology" and "alternative energy

5 technology business" mean those terms as defined in section 9h of

6 the general property tax act, 1893 PA 206, MCL 211.9h.

7 (b) "Alternative energy zone" means a renaissance zone des-

8 ignated as an alternative energy zone by the board of the

9 Michigan strategic fund under section 8a of the Michigan renais-

10 sance zone act, 1996 PA 376, MCL 125.2688a.

11 (c) "Authority" means the Michigan next energy authority

12 created under section 3.

13 (d) "Board" means the governing body of an authority under

14 section 4.

15 (e) "Center" means a separate legal entity created to

16 manage, develop, and create a master plan for land located within

17 an alternative energy zone created by the authority and to exer-

18 cise other duties as considered necessary by the authority to

19 fulfill the purposes of this act.

20 (f) "Department" means the department of management and

21 budget.

22 (g) "Fiscal year" means that annual period that is the

23 fiscal year of the state government.

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1 (h) "Fund" means the alternative energy technology fund

2 created in section 20.

3 (i) "Governmental agency" means a department, agency, or

4 commission of this state or of a county, city, village, or town-

5 ship of this state.

6 (j) "Infrastructure" means a public facility as that term is

7 defined in section 2 of the local development financing act, 1986

8 PA 281, MCL 125.2152. Infrastructure also includes a facility or

9 facilities that support an alternative energy technology project

10 and that are located within an alternative energy zone.

11 (k) "Local unit of government" means a city, county, town-

12 ship, or village.

13 (l) "Nonprofit corporation" means a nonprofit corporation

14 created under the nonprofit corporation act, 1982 PA 162,

15 MCL 450.2101 to 450.3192

16 (m) "Project" means an alternative energy technology project

17 and, in addition, means the acquisition, construction, conver-

18 sion, conveyance, or leasing of land or facilities to carry out

19 the purposes of this act and of the authority, including, but not

20 limited to, acquisition of land or interest in land, buildings,

21 structures, or other planned or existing improvements to land,

22 including leasehold improvements, machinery, equipment, or fur-

23 nishings, which include, but are not limited to, the following

24 facilities for alternative energy technology: office facilities;

25 engineering facilities; research and development laboratories;

26 manufacturing facilities; warehousing facilities; parts

27 distribution facilities; storage facilities; testing facilities;

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1 facilities that support alternative energy technology projects;

2 and equipment or facilities designed to produce energy from

3 renewable resources.

4 Sec. 3. (1) There is created by this act a public body cor-

5 porate and politic known as the Michigan next energy authority.

6 The authority shall be located within the department.

7 (2) The authority shall exercise its prescribed statutory

8 powers, duties, and functions independently of the director of

9 the department. The budgeting, procurement, and related adminis-

10 trative functions of the authority shall be performed under the

11 direction and supervision of the director of the department.

12 (3) The authority may contract with the department for the

13 purpose of maintaining the rights and interests of the

14 authority.

15 (4) The accounts of the authority may be subject to annual

16 financial audits by the state auditor general. Records of the

17 authority shall be maintained according to generally accepted

18 accounting principles.

19 Sec. 4. (1) An authority created under this act is governed

20 by a board consisting of 7 board members who are residents of

21 this state.

22 (2) The members of a board shall be appointed by the gover-

23 nor for the following initial terms:

24 (a) One board member representing a state university gov-

25 erned by a control board under section 5 of article VIII of the

26 state constitution of 1963 located within a county in which land

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1 transferred to the authority under section 22 is located, for a

2 term of 4 years.

3 (b) One board member representing the government of a county

4 in which land transferred to the authority under section 22 is

5 located, for a term of 3 years.

6 (c) One board member representing the government of a city

7 or township in which land transferred to the authority under sec-

8 tion 22 is located, for a term of 4 years.

9 (d) Four board members, 1 for a term of 2 years, 1 for a

10 term of 3 years, and 2 for a term of 4 years.

11 (3) The board members described in subsection (2)(a) through

12 (c) shall be appointed by the governor representing the economic

13 development interests in this state.

14 (4) Upon appointment to the board under subsection (2) and

15 upon the taking and filing of the constitutional oath of office

16 prescribed in section 1 of article XI of the state constitution

17 of 1963, a member of the board shall enter the office and exer-

18 cise the duties of the office.

19 (5) After the first appointment, each member shall serve a

20 term of 4 years, except that a person appointed to fill a vacancy

21 shall be appointed for the balance of the unexpired term. The

22 governor shall fill a vacancy in the office by appointment in the

23 same manner as an appointment under subsection (2). A member of

24 the board shall hold office until a successor has been appointed

25 and qualified. A member of the board is eligible for

26 reappointment.

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1 (6) A member of the board or an officer, appointee, or

2 employee of the authority is not subject to personal liability

3 when acting in good faith within the scope of his or her author-

4 ity or on account of liability of the authority. The board may

5 indemnify a member of the board or an officer, appointee, or

6 employee of the authority against liability arising out of the

7 discharge of his or her official duties. The authority may

8 indemnify and procure insurance indemnifying members of the board

9 and other officers and employees of the authority from personal

10 loss or accountability for liability asserted by a person with

11 regard to bonds or other obligations of the authority or from any

12 personal liability or accountability by reason of the issuance of

13 the bonds or other obligations or by reason of any other action

14 taken or the failure to act by the authority. The authority may

15 also purchase and maintain insurance on behalf of any person

16 against any liability asserted against the person and incurred by

17 the person in any capacity or arising out of the status of the

18 person as a member of the board or an officer or employee of the

19 authority, whether or not the authority would have the power to

20 indemnify the person against any liability under this section.

21 The authority, pursuant to bylaw, contract, agreement, or resolu-

22 tion of its board, may obligate itself in advance to indemnify

23 persons.

24 (7) Members of the board and officers and employees of the

25 authority are considered public servants subject to 1968 PA 317,

26 MCL 15.321 to 15.330, and 1968 PA 318, MCL 15.301 to 15.310. A

27 member of the board or an officer, employee, or agent of the

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1 authority shall discharge the duties of the position in a

2 nonpartisan manner, in good faith, in the best interests of the

3 authority, and with the degree of diligence, care, and skill that

4 an ordinarily prudent person would exercise under similar circum-

5 stances in a like position. In discharging duties of the office,

6 a member of the board or an officer, employee, or agent of the

7 authority, when acting in good faith, may rely upon a majority

8 vote of a quorum of the board, upon the opinion of counsel for

9 the authority, upon the report of an independent appraiser

10 selected with reasonable care by the board, or upon financial

11 statements of the authority represented to the member of the

12 board, officer, employee, or agent to be correct by the officer

13 of the authority having charge of its books or accounts or stated

14 in a written report by the auditor general or a certified public

15 accountant or a firm of accountants to fairly reflect the finan-

16 cial condition of the authority.

17 (8) The board may establish policies and procedures requir-

18 ing periodic disclosure of relationships that may give rise to

19 conflicts of interest. The board may require that a member of

20 the board who has a direct or indirect interest in any matter

21 before the authority disclose the member's interest and any rea-

22 sons reasonably known to the member of the board why the transac-

23 tion may not be in the best interest of the public before the

24 board takes any action with respect to the matter. The disclo-

25 sure shall become part of the record of an authority's

26 proceedings. A member of the board who has an interest in a

27 contract before the authority, as set forth in section 2(2) of

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1 1968 PA 317, MCL 15.322, shall not take part in the negotiation

2 or approval of the contract.

3 (9) The governor shall designate 1 member of the board to

4 serve as its chairperson. The board shall elect a

5 vice-chairperson, secretary, and any additional officers of the

6 board considered necessary by the board from among its members.

7 With the exception of the chairperson, who shall serve a 4-year

8 term, all officers of the board shall be elected annually by the

9 board. Members of the board shall serve without compensation,

10 but shall be reimbursed for actual and necessary expenses.

11 Sec. 5. (1) Upon the appointment of at least 4 members of

12 the board under section 4, the board may hold its first meeting.

13 If fewer than 4 members of the board have been appointed under

14 section 4 within 30 days after the date on which the authority

15 was created, a majority of those board members appointed may hold

16 the first meeting of the board after the expiration of that

17 30-day period. The first meeting of the board shall be held not

18 more than 60 days after the creation date of the authority.

19 (2) Except for those powers reserved or delegated to a chief

20 executive officer of the authority by this act or by the board,

21 the board shall not delegate any power of the board to any other

22 officer or committee of the authority. The board may withdraw

23 from the chief executive officer any power that the board dele-

24 gates to the chief executive officer.

25 (3) The board shall organize and adopt its own policies,

26 procedures, schedule of regular meetings, and a regular meeting

27 date, place, and time. The board shall conduct all business at

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1 public meetings held in compliance with the open meetings act,

2 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time,

3 date, and place of each meeting shall be giving in the manner

4 required by the open meetings act, 1976 PA 267, MCL 15.261 to

5 15.275.

6 (4) A writing prepared, owned, used, in the possession of,

7 or retained by the board in the performance of an official func-

8 tion shall be made available to the public in compliance with the

9 freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

10 (5) A board may act only by resolution. A majority of the

11 members of the board then in office, or of any committee of the

12 board, shall constitute a quorum for the transaction of

13 business. A vote of a majority of the members of the board serv-

14 ing at the time of the vote is necessary to approve the issuance

15 by the authority of bonds, to approve or amend the annual budget

16 of the authority, or to hire, remove, discharge, or set the

17 salary of the chief executive officer. Except as otherwise pro-

18 vided in this act, a vote of the majority of the board members

19 present at a meeting at which a quorum is present constitutes the

20 action of the board or of the committee.

21 (6) Before the beginning of each fiscal year, the board

22 shall prepare a budget containing an itemized statement of the

23 estimated current operational expenses and the expenses for the

24 operation and development of the land under the jurisdiction of

25 the board, the amount necessary to pay the principal and interest

26 of any outstanding bonds or other obligations of the authority

27 maturing during the ensuing fiscal year or that have previously

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1 matured and are unpaid, an estimate of the revenue of the

2 authority from all sources for the ensuing fiscal year, and other

3 amounts necessary to further the purposes of this act. The board

4 shall adopt that budget in accordance with the uniform budgeting

5 and accounting act, 1968 PA 2, MCL 141.421 to 141.440a, and shall

6 submit it to the department for its approval. The authority's

7 budget shall be funded by proceeds derived from the conveyance of

8 land held by the authority and any gifts, grants, loans, and

9 other aids from any person or the federal, the state, or a local

10 government or any agency of the federal, the state, or a local

11 government.

12 Sec. 6. (1) The board may appoint a person, other than a

13 member of the board, to serve as the chief executive of the

14 authority, to whom the authority may delegate any of its adminis-

15 trative powers and authorization. The chief executive shall be

16 an ex officio member, without vote, of the board and shall not be

17 considered in determining the presence of a quorum, and shall

18 have professional qualifications commensurate with the responsi-

19 bility of the position. During employment, the chief executive

20 shall not have a financial interest in facilities or projects

21 over which the authority has jurisdiction or power to act.

22 Before entering upon the duties of his or her office, the chief

23 executive shall take and file the constitutional oath of office

24 provided in section 1 of article XI of the state constitution of

25 1963.

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1 (2) Subject to the approval of the board, the chief

2 executive shall supervise, and be responsible for, all of the

3 following:

4 (a) The performance of the functions of the authority under

5 this act.

6 (b) A regular report describing the activities and financial

7 condition of the authority.

8 (c) The issuance of bonds and notes approved by the board.

9 (d) The negotiation and establishment of compensation and

10 other terms and conditions of employment for employees of the

11 authority.

12 (e) The negotiation, supervision, and enforcement of con-

13 tracts entered into by the authority and the supervision of con-

14 tractors and subcontractors of the authority in the performance

15 of their duties.

16 (f) All other activities or functions that the board consid-

17 ers necessary.

18 (3) If considered necessary by the board, the chief execu-

19 tive may appoint a chief financial officer who shall be the trea-

20 surer of the authority, who shall have professional qualifica-

21 tions commensurate with the responsibility of the position.

22 Notwithstanding any law or charter provision to the contrary, the

23 chief financial officer of the authority shall receive all money

24 belonging to the authority or arising or received in connection

25 with the land over which jurisdiction has been transferred to the

26 authority, from whatever source derived. Money of the authority

27 shall be deposited, invested, and paid by the chief financial

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1 officer only in accordance with this act or with policies,

2 procedures, ordinances, or resolutions adopted by the board. The

3 chief financial officer shall provide the board with copies of

4 all reports made by the chief financial officer to the chief

5 executive officer.

6 (4) The board may employ legal and technical experts, pri-

7 vate consultants and engineers, accountants, and other agents or

8 employees for rendering professional and technical assistance and

9 advice as may be necessary. The authority shall determine the

10 qualifications, duties, and compensation of those it employs.

11 Sec. 7. (1) Except as otherwise provided in this act, the

12 authority may do all things necessary or convenient to implement

13 the purposes, objectives, and provisions of this act and the pur-

14 poses, objectives, and powers delegated to the board by other

15 laws or executive orders, including, but not limited to, all of

16 the following:

17 (a) Adopt, amend, and repeal bylaws for the regulation of

18 its affairs and the conduct of its business.

19 (b) Adopt an official seal and alter the seal at the plea-

20 sure of the board.

21 (c) Sue and be sued in its own name and plead and be

22 impleaded.

23 (d) Solicit and accept gifts, grants, loans, and other

24 assistance from any person or the federal, the state, or a local

25 government or any agency of the federal, the state, or a local

26 government or participate in any other way in any federal, state,

27 or local government program.

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1 (e) Research and publish studies, investigations, surveys,

2 and findings on the development and use of alternative energy

3 technology.

4 (f) Manage and oversee an alternative energy zone on land

5 owned by the authority and receive designation of renaissance

6 zone status for the alternative energy zone.

7 (g) Finance, direct, or otherwise aid in the planning, con-

8 struction, and design of alternative energy technology businesses

9 and infrastructure located within an alternative energy zone.

10 (h) Lay out, design, construct, acquire, operate, lease,

11 sell, and convey planned sites within an alternative energy zone,

12 subject to the restrictions contained in this act.

13 (i) Make grants, loans, and investments; guarantee and

14 insure loans, leases, bonds, notes, or other indebtedness,

15 whether public or private; and issue letters of credit.

16 (j) Construct; acquire by gift, purchase, installment pur-

17 chase, or lease; and reconstruct, improve, repair, or equip a

18 project or any part of a project, including related

19 infrastructure.

20 (k) Borrow money and issue bonds and notes to finance part

21 or all of the project costs of a project and secure those bonds

22 and notes by mortgage, assignment, or pledge of any of its money,

23 revenues, income, and properties. The authority provided by this

24 subdivision includes, but is not limited to, issuing bonds and

25 notes to acquire and install machinery, equipment, furnishings,

26 and other personal property, notwithstanding that the authority

27 does not own or propose to own or finance the building or land in

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1 or near to which the machinery, equipment, furnishings, and other

2 personal property are or will be located.

3 (l) Acquire or contract to acquire from a person, a munici-

4 pality, the federal or state government, or an agency of the fed-

5 eral or state government, leaseholds, real or personal property,

6 or any interest in real or personal property and own, hold,

7 clear, improve, and rehabilitate and sell, assign, exchange,

8 transfer, convey, lease, mortgage, or otherwise dispose of or

9 encumber leaseholds, real or personal property, or any interest

10 in real or personal property, as is convenient for the accom-

11 plishment of the purposes of this act and of the authority.

12 (m) Procure insurance against any loss in connection with

13 the authority's property, assets, or activities.

14 (n) Invest any money of the authority, at the board's dis-

15 cretion, in any bond, note, or other obligation determined proper

16 by the board, and name and use depositories for its money.

17 (o) Contract for goods and services and engage personnel as

18 necessary and engage the services of private consultants, manag-

19 ers, legal counsel, engineers, accountants, and auditors for

20 rendering professional financial assistance and advice payable

21 out of any money of the authority.

22 (p) Charge, impose, and collect fees and charges in connec-

23 tion with any transaction and provide for reasonable penalties

24 for delinquent payment of fees or charges.

25 (q) Indemnify and procure insurance indemnifying any members

26 of the board from personal loss or accountability from liability

27 asserted by a person on the bonds or notes of the authority or

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1 from any personal liability or accountability by reason of the

2 issuance of the bonds, notes, insurance, or guarantees; by reason

3 of acquisition, construction, ownership, or operation of a

4 project; or by reason of any other action taken or the failure to

5 act by the authority.

6 (r) Enter into a lease for the use or sale of a project.

7 The lease may provide for options to purchase or renew.

8 (s) Mortgage or create security interests in a project or

9 any part of a project, or in a lease or loan, or in the rents,

10 revenues, or sums to be paid under a lease or loan, in favor of

11 the holders of the bonds or notes issued by the authority.

12 (t) Convey or release a project or any part of a project to

13 a lessee, purchaser, or borrower under any agreement after provi-

14 sion has been made for the retirement in full of the bonds or

15 notes issued for that project under terms and conditions provided

16 in the agreement or as may be agreed with the holders of the

17 bonds or notes, at any time where the obligation of the lessee,

18 purchaser, or borrower to make the payments prescribed shall

19 remain fixed as provided in the agreement notwithstanding the

20 conveyance or release, or as may otherwise be agreed with the

21 holders of the bonds or notes.

22 (u) Create and operate centers, accounts, and funds as

23 required or permitted by law for the use, management, and dis-

24 bursement of real or personal property or other assets of the

25 authority.

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1 (v) Promote the research, development, and manufacturing of

2 alternative energy technology through the conveyance or lease of

3 real property.

4 (w) Develop property for economic development reasons to

5 advance the purposes of the authority.

6 (x) Make and enter into contracts or agreements with a state

7 university described in section 4 of article VIII of the state

8 constitution of 1963, a community college, governmental agencies,

9 local units of government, and nonprofit corporations necessary

10 or incidental to accomplish the powers and duties of the author-

11 ity under this act or other laws that relate to the purposes and

12 responsibilities of the authority.

13 (y) Do all other things necessary or convenient to promote

14 and increase the research, development, and manufacturing of

15 alternative energy technology and to otherwise achieve the objec-

16 tives and purposes of the authority, this act, or other laws that

17 relate to the purposes and responsibilities of the authority.

18 (2) The enumeration of a power in this act shall not be con-

19 strued as a limitation upon the general powers of the authority.

20 Sec. 8. (1) The authority may acquire real or personal

21 property or rights or interests in real or personal property by

22 gift, devise, transfer, exchange, foreclosure, purchase, or oth-

23 erwise on terms and conditions and in a manner the authority con-

24 siders proper. The authority may own, lease as lessor, convey,

25 demolish, relocate, or rehabilitate real or personal property or

26 rights or interests in real or personal property, consistent with

27 the purposes of this act.

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1 (2) Real property acquired by the authority by purchase may

2 be obtained by any method deemed desirable by the authority. The

3 authority may purchase real property or rights or interests in

4 real property for any purpose the authority considers necessary

5 to carry out the purposes of this act, including, but not limited

6 to, 1 or more of the following purposes:

7 (a) The use or development of property the authority has

8 otherwise acquired for alternative energy technology or related

9 infrastructure.

10 (b) To facilitate the assembly of property for sale or lease

11 to any other public or private person, for use consistent with

12 the purposes of this act.

13 Sec. 9. (1) The authority may control, hold, manage, main-

14 tain, operate, repair, lease as lessor, secure, prevent the waste

15 or deterioration of, demolish, and take all other actions neces-

16 sary to preserve the value of property held by the authority.

17 The authority has exclusive jurisdiction over all property held

18 by the authority. The authority may take or perform the follow-

19 ing with respect to property held or owned by the authority:

20 (a) Grant or acquire a license, easement, or option with

21 respect to property as the authority determines is reasonably

22 necessary to achieve the purposes of this act.

23 (b) Fix, charge, and collect rents, fees, and charges for

24 use of property under the control of the authority.

25 (c) Pay any tax or special assessment due on property

26 acquired or owned by the authority.

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1 (d) Take any action, provide any notice, or institute any

2 proceeding required to clear or quiet title to property held by

3 the authority in order to establish ownership by and vest title

4 to property in the authority.

5 (e) Develop a land use master plan consistent with the pur-

6 poses of this act that is in reasonable accord with the master

7 zoning plan of the local unit of government in which the property

8 is located.

9 (2) The authority shall defend any actions concerning title

10 claims against property held by the authority and shall have

11 exclusive jurisdiction over all property held by the authority.

12 (3) The authority and the governing body board of a state

13 university described in section 4 of article VIII of the state

14 constitution of 1963, a governmental agency, or a local unit of

15 government may enter into an interlocal agreement under the urban

16 cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

17 124.512, providing for the joint exercise of powers granted to an

18 authority under this act, including, but not limited to, those

19 powers related to the acceptance and management of real

20 property. The university governing body board, a governmental

21 agency, or a local unit of government shall have the same powers

22 and duties as the authority for purposes of an agreement under

23 this subsection. The authority may transfer property to a public

24 body corporate created by an agreement entered into under this

25 subsection.

26 (4) All powers and duties granted by this act to the

27 governor, the authority, or the board, including the authority to

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1 convey, transfer, or dispose of property, may be exercised

2 notwithstanding any other law, charter provision, or ordinance to

3 the contrary.

4 (5) In the exercise of its powers and duties under this act

5 and its powers relating to property held by the authority, the

6 authority shall have complete control as fully and completely as

7 if it represented a private property owner and shall not be

8 subject to restrictions imposed by other law, charter, ordi-

9 nances, or resolutions of a local unit of government.

10 Sec. 10. (1) The authority may authorize and issue its

11 bonds or notes payable solely from revenues or funds available to

12 the authority. Bonds and notes of the authority are not a debt

13 or liability of this state and do not create or constitute any

14 indebtedness, liability, or obligations of this state or consti-

15 tute a pledge of the faith or credit of this state. All author-

16 ity bonds and notes shall be payable solely from revenues or

17 funds pledged or available for their payment as authorized in

18 this act. Each bond and note shall contain on its face a state-

19 ment to the effect that the authority is obligated to pay the

20 principal of and the interest on the bond or note only from reve-

21 nue or funds of the authority pledged for the payment of princi-

22 pal and interest and that this state is not obligated to pay that

23 principal and interest and that neither the faith and credit nor

24 the taxing power of this state is pledged to the payment of the

25 principal of or the interest on the bond or note.

26 (2) All expenses incurred in carrying out this section shall

27 be payable solely from revenues or funds provided or to be

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1 provided under this act. This act does not authorize the

2 authority to incur any indebtedness or liability on behalf of or

3 payable by this state.

4 (3) Bonds and notes issued under this act are not subject to

5 the revised municipal finance act, 2001 PA 34, MCL 141.2101 to

6 141.2821.

7 (4) The issuance of bonds and notes under this section is

8 subject to the agency financing reporting act.

9 Sec. 11. (1) The authority may issue from time to time

10 bonds or notes in principal amounts the authority considers nec-

11 essary to provide funds for any purpose, including, but not

12 limited to, all of the following:

13 (a) The payment, funding, or refunding of the principal of,

14 interest on, or redemption premiums on bonds or notes issued by

15 the authority whether the bonds or notes or interest to be funded

16 or refunded has or has not become due.

17 (b) The establishment or increase of reserves to secure or

18 to pay authority bonds or notes or interest on those bonds or

19 notes.

20 (c) The payment of interest on the bonds or notes for a

21 period as the authority determines.

22 (d) The payment of all other costs or expenses of the

23 authority incident to and necessary or convenient to carry out

24 its corporate purposes and powers.

25 (2) The bonds or notes of the authority shall not be a gen-

26 eral obligation of the authority but shall be payable solely from

27 the revenues or funds, or both, pledged to the payment of the

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1 principal of and interest on the bonds or notes as provided in

2 the resolution authorizing the bonds or notes.

3 (3) The bonds or notes of the authority:

4 (a) Shall be authorized by resolution of the authority.

5 (b) Shall bear the date or dates of issuance.

6 (c) May be issued as either tax-exempt bonds or notes or

7 taxable bonds or notes for federal income tax purposes.

8 (d) Shall be serial bonds, term bonds, or term and serial

9 bonds.

10 (e) Shall mature at a time or times not exceeding 30 years

11 from the date of issuance.

12 (f) May provide for sinking fund payments.

13 (g) May provide for redemption at the option of the author-

14 ity at any time for any reason or reasons.

15 (h) May provide for redemption at the option of the bond-

16 holder at any time for any reason.

17 (i) Shall bear interest at a fixed or variable rate or rates

18 of interest per year or at no interest.

19 (j) Shall be registered bonds, coupon bonds, or both.

20 (k) May contain a conversion feature.

21 (l) May be transferable.

22 (m) Shall be in the form, denomination or denominations, and

23 with such other provisions and terms as are determined necessary

24 or beneficial by the authority.

25 Sec. 12. (1) The authority may authorize and approve an

26 insurance contract, an agreement for a line of credit, a letter

27 of credit, a commitment to purchase notes or bonds, an agreement

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1 to remarket bonds or notes, or any other transaction to provide

2 security to assure timely payment of a bond or note.

3 (2) The authority may authorize payment from the proceeds of

4 the notes or bonds, or other funds available, of the costs of

5 issuance, including, but not limited to, fees for placement,

6 charges for insurance, letters of credit, lines of credit, remar-

7 keting agreements, reimbursement agreements, or purchase or sales

8 agreements or commitments, or agreements to provide security to

9 assure timely payment of notes or bonds.

10 Sec. 13. Within limitations that shall be contained in the

11 issuance or authorization resolution of the authority, the

12 authority may authorize a member of the board, the chief execu-

13 tive, or other officer of the authority to do 1 or more of the

14 following:

15 (a) Sell and deliver and receive payment for notes or

16 bonds.

17 (b) Refund notes or bonds by the delivery of new notes or

18 bonds whether or not the notes or bonds to be refunded have

19 matured or are subject to redemption.

20 (c) Deliver notes or bonds, partly to refund notes or bonds

21 and partly for any other authorized purpose.

22 (d) Buy notes or bonds that are issued and resell those

23 notes or bonds.

24 (e) Approve interest rates or methods for fixing interest

25 rates, prices, discounts, maturities, principal amounts, denomi-

26 nations, dates of issuance, interest payment dates, redemption

27 rights, at the option of the authority or the holder, the place

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1 of delivery and payment, and other matters and procedures

2 necessary to complete the transactions authorized.

3 (f) Direct the investment of any and all funds of the

4 authority.

5 (g) Approve the terms of a contract and execute and deliver

6 the contract subject to the restrictions of this part.

7 (h) Approve the terms of any insurance contract, agreement

8 for a line of credit, a letter of credit, a commitment to pur-

9 chase notes or bonds, an agreement to remarket bonds or notes, an

10 agreement to manage payment, revenue, or interest rate exposure,

11 or any other transaction to provide security to assure timely

12 payment of a bond or note.

13 (i) Perform any power, duty, function, or responsibility of

14 the authority.

15 Sec. 14. A resolution authorizing bonds or notes may pro-

16 vide for all of the following that shall be part of the contract

17 with the holders of the bonds or notes:

18 (a) A pledge to any payment or purpose all or any part of

19 authority revenues or assets to which its right then exists or

20 may later come to exist, of money derived from the revenues or

21 assets, and of the proceeds of bonds or notes or of an issue of

22 bonds or notes, subject to any existing agreements with bondhold-

23 ers or noteholders.

24 (b) A pledge of a loan, grant, or contribution from the fed-

25 eral, state, or local government.

07173'02

1 (c) The establishment and setting aside of reserves or

2 sinking funds and the regulation and disposition of reserves or

3 sinking funds subject to this act.

4 (d) Authorization for and limitations on the issuance of

5 additional bonds or notes for the purposes provided for in the

6 resolution and the terms upon which additional notes or bonds may

7 be issued and secured.

8 (e) The procedure, if any, by which the terms of a contract

9 with noteholders or bondholders may be amended or abrogated, the

10 number of noteholders or bondholders who are required to consent

11 to the amendment or abrogation, and the manner in which consent

12 may be given.

13 (f) A contract with the bondholders as to the custody, col-

14 lection, securing, investment, and payment of any money of the

15 authority. Money of the authority and deposits of money may be

16 secured in the manner determined by the authority. Banks and

17 trust companies may give security for the deposits.

18 (g) Vest in a trustee, or a secured party, the property,

19 income, revenue, receipts, rights, remedies, powers, and duties

20 in trust or otherwise as the authority determines necessary or

21 appropriate to adequately secure and protect noteholders and

22 bondholders or to limit or abrogate the right of the holders of

23 bonds or notes of the authority to appoint a trustee under this

24 act or to limit the rights, powers, and duties of the trustee.

25 (h) Provide the trustee, the noteholders, or the bondholders

26 remedies that may be exercised if the authority fails or refuses

27 to comply with this act or defaults in an agreement made with the

07173'02

1 holders of an issue of bonds or notes, which may include, but are

2 not limited to, the following:

3 (i) By mandamus or other suit, action, or proceeding at law

4 or in equity, to enforce the rights of the bondholders or note-

5 holders and require the authority to carry out any other agree-

6 ment with the holders of those notes or bonds and to perform the

7 duties of the authority under this act.

8 (ii) Bring suit upon the notes or bonds.

9 (iii) By action or suit, require the authority to account as

10 if it were the trustee of an express trust for the holders of the

11 notes or bonds.

12 (iv) By action or suit in equity, enjoin any acts or things

13 that may be unlawful or in violation of the rights of the holders

14 of the notes or bonds.

15 (v) Declare the notes or bonds due and payable and, if all

16 defaults shall be made good, then, as permitted by the resolu-

17 tion, annul that declaration and its consequences.

18 (i) Any other matters of like or different character that in

19 any way affect the security or protection of the bonds or notes.

20 Sec. 15. A pledge made by the authority shall be valid and

21 binding from the time the pledge is made. The money or property

22 pledged and then received by the authority immediately is subject

23 to the lien of the pledge without physical delivery or further

24 act. The lien of a pledge is valid and binding as against par-

25 ties having claims of any kind in tort, contract, or otherwise

26 against the authority and is valid and binding as against the

27 transfers of money or property pledged, irrespective of whether

07173'02

1 parties have notice. The resolution, the trust agreement, or any

2 other instrument by which a pledge is created is not required to

3 be recorded in order to establish and perfect a lien or security

4 interest in the property pledged.

5 Sec. 16. The members of the board and any person executing

6 bonds or notes issued as provided in this act and any person exe-

7 cuting any agreement on behalf of the authority is not personally

8 liable on the bonds or notes by reason of their issuance.

9 Sec. 17. The authority may hold, cancel, or resell author-

10 ity bonds or notes subject to or in accordance with an agreement

11 with holders of authority bonds or notes.

12 Sec. 18. This state pledges to and agrees with the holders

13 of bonds or notes issued in accordance with this act that this

14 state shall not limit or restrict the rights vested in the

15 authority by this act to fulfill the terms of an agreement made

16 with the holders of authority bonds or notes or in any way impair

17 the rights or remedies of the holders of the bonds or notes of

18 the authority until the bonds and notes, together with interest

19 on the bonds or notes and interest on any unpaid installments of

20 interest, and all costs and expenses in connection with an action

21 or proceedings by or on behalf of those holders are fully met,

22 paid, and discharged.

23 Sec. 19. Notwithstanding any restriction in any other law,

24 this state and a public officer, local unit of government, agency

25 of this state or a local unit of government, an intergovernmental

26 entity created under the laws of this state; a bank, trust

27 company, savings bank and institution, savings and loan

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1 association, investment company, or other person carrying on a

2 banking business; an insurance company, insurance association, or

3 other person carrying on an insurance business; or an executor,

4 administrator, guardian, trustee, or other fiduciary may legally

5 invest funds belonging to them or within their control in bonds

6 or notes issued under this act, and authority bonds or notes

7 shall be authorized security for public deposits.

8 Sec. 20. (1) The Michigan alternative energy technology

9 fund is created under the jurisdiction and control of the author-

10 ity and may be administered for the general operations of the

11 authority and to secure any notes and bonds of the authority.

12 (2) The authority may receive money or other assets from any

13 source for deposit into the fund. The authority shall credit to

14 the fund interest and earnings from fund investments.

15 (3) Money in the fund at the close of the fiscal year shall

16 remain in the fund and shall not lapse to any other fund.

17 (4) The authority shall expend money from the fund only for

18 the purposes provided in this act.

19 (5) The authority shall deposit into the fund all money it

20 receives from the sale, transfer, or lease of property under this

21 act. The authority shall credit to the fund the proceeds of the

22 sale of notes or bonds to the extent provided for in the autho-

23 rizing resolution of the authority and any other money made

24 available to the authority for the purposes of the fund.

25 (6) If at any time the fund has been exhausted, the author-

26 ity on or before September 1 shall certify to the governor the

27 amount necessary to restore the fund to an amount equal to the

07173'02

1 payment of principal and interest of notes or bonds, for the

2 purchase redemption of the notes or bonds, or for the payment of

3 a redemption premium required to be paid when the notes or bonds

4 are redeemed before maturity. The governor shall include in his

5 or her annual budget the amount certified under this subsection

6 by the authority.

7 Sec. 21. The authority created under this act shall be

8 exempt from and shall not be required to pay taxes on property,

9 both real and personal, belonging to the authority, which is used

10 for a public purpose. Property of the authority is public prop-

11 erty devoted to an essential public and governmental function and

12 purpose. The authority's income and operation, including bonds

13 or notes issued by the authority or the interest and income

14 derived from the bonds or notes, are exempt from all taxes and

15 special assessments of this state or a political subdivision of

16 this state.

17 Sec. 22. (1) There is transferred to the authority, without

18 consideration, certain parcels of state owned property located in

19 York township, Washtenaw county, Michigan, and further described

20 as follows:

21 (a) Parcel #1: All of section 2, t4s, r6e, washtenaw

22 county, Michigan, lying westerly of interstate highway us-23

23 except a parcel of land and buildings in the northeast 1/4 of

24 section 2, t4s, r6e, york township, washtenaw county, Michigan,

25 more particularly described as follows: commencing at the north

26 1/4 post of section 2; thence north 88 degrees 33'30" east 350.00

27 feet along the north line of section 2; thence south 01 degrees

07173'02

1 26'30" east 380.00 feet; thence south 88 degrees 33'30" west

2 370.00 feet; thence north 01 degrees 26' 30" west 380.00 feet to

3 the point of beginning; containing 3.23 acres of land, more or

4 less. The above described parcel contains approximately 450

5 acres, subject to survey.

6 (b) Parcel #2: the east 1/2 of section 3, t4s, r6e, wash-

7 tenaw county, Michigan, except the north 1/2 of the northeast 1/4

8 of said section 3, containing approximately 300 acres, subject to

9 survey.

10 (c) Parcel #3: the northwest 1/4 of section 3, t4n, r6e,

11 washtenaw county, Michigan lying easterly of the conrail rail-

12 road, containing approximately 40 acres, subject to survey.

13 (d) Parcel #4: beginning at the north 1/4 corner of section

14 11, t4s, r6e, washtenaw county, Michigan, thence south 89 degrees

15 49' 45" west 1,485.77 feet, on the north line of said section 11;

16 thence south 01 degrees 32' 29" east 948.23 feet; thence north 89

17 degrees 49' 45" east 490.01 feet; thence north 01 degrees 32' 29"

18 west 239.65 feet; thence north 89 degrees 49' 45" east 998.63

19 feet, to the north-south 1/4 line of said section 11; thence

20 north 01 degrees 46' 23" west 708.65 feet, on said north-south

21 1/4 line to the point of beginning; containing 26.88 acres, more

22 or less, subject to survey.

23 (2) The descriptions of the parcels in subsection (1) are

24 approximate and for purposes of transfer are subject to adjust-

25 ments as the state administrative board or the attorney general

26 considers necessary by survey or other legal description. These

07173'02

1 parcels of land are subject to any easements, rights-of-way, or

2 restrictions existing at the time of transfer, if any.

3 Sec. 23. (1) Upon completion of the transfer described in

4 section 22, the authority, on behalf of this state and for the

5 purpose of promoting economic development and the purposes of the

6 authority, may convey for value as determined under section 24,

7 or may convey a leasehold in, any portion or all of the parcels

8 of property described in section 22.

9 (2) Any reuse or development of the property conveyed or

10 leased under this act shall be done by the authority in con-

11 formance with a plan developed by the authority. The authority

12 may enter into an agreement with a state university governed by a

13 control board under section 4 of article VIII of the state con-

14 stitution of 1963, a local unit of government, a governmental

15 agency, or a nonprofit corporation to create this plan or develop

16 the property conveyed. The plan shall create potential uses for

17 the property that further the economic goals for this state,

18 including, but not limited to, an alternative energy technology

19 research and development park, an alternative energy technology

20 manufacturing park, mixed-use office complexes, and related

21 infrastructure.

22 Sec. 24. (1) Notwithstanding any other provisions to the

23 contrary, value shall be determined by the authority under sec-

24 tion 22 based on the property's highest and best use in accord-

25 ance with the plan described in section 23 and the purposes of

26 the authority. The authority may, on terms and conditions, and

27 in a manner for consideration the authority considers proper,

07173'02

1 fair, and valuable, including for no monetary consideration,

2 convey, sell, transfer, exchange, lease as lessor, or otherwise

3 dispose of property or rights or interests in property in which

4 the authority holds a legal interest to any public or private

5 person for the specific purpose of fulfilling this act.

6 Consideration received from any conveyance of the authority's

7 real or personal property shall be deposited in the fund created

8 under section 20 of this act.

9 (2) Any conveyance of the property described in this act

10 shall provide for all of the following:

11 (a) That the property shall be used for public purposes or

12 to further the public purposes of this act, as determined by the

13 authority pursuant to the purposes in this act, and that upon

14 termination of that use or use for any other purpose, the author-

15 ity may reenter and repossess the property, terminating the

16 grantee's estate in the property.

17 (b) That any subsequent conveyance by the grantee or the

18 grantee's successor(s) shall also be subject to the "exclusive

19 use" and right of reentry and possession provisions of subdivi-

20 sion (a).

21 (c) That if the grantee or the grantee's successor disputes

22 the authority's exercise of its rights of reentry and possession

23 and fails to promptly deliver possession of the property to this

24 state, the attorney general, on behalf of this state, may bring

25 an action to quiet title to, and regain possession of, the

26 property.

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1 (3) A conveyance authorized under this act shall be by

2 quitclaim deed approved by the attorney general and shall convey

3 all rights held by the state to coal, oil, gas, and other miner-

4 als found on or under the property conveyed.

5 (4) Except as otherwise provided in this act, or as the

6 authority otherwise agrees, any proceeds received by the author-

7 ity may be retained by the authority for the purposes of this

8 act.

9 Sec. 25. This act shall be construed liberally to effectu-

10 ate the legislative intent and its purposes. All powers granted

11 shall be cumulative and not exclusive and shall be broadly inter-

12 preted to effectuate the intent and purposes and not as a limita-

13 tion of powers.

07173'02 Final page. JLB